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Highlights of CBP Commissioner's Recent Remarks on 10+2, SFI, 100% Scanning, and C-TPAT (Part II - Final)

During a recent speech at the Center for Strategic and International Studies, U.S. Customs and Border Protection Commissioner Basham discussed a variety of cargo security issues.

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This is Part II, the final part of a multi-part series of summaries highlighting CBP Commissioner Basham's remarks and focuses on issues such as 10+2 for maritime cargo, the Secure Freight Initiative (SFI), 100% container scanningat foreign ports, and the Customs-Trade Partnership Against Terrorism (C-TPAT). (See ITT's Online Archives or 07/17/07 news, 07071705, for Part I on container security devices.)

CBP Plans to "Phase In" the 10+2 Advance Data Requirements for Maritime Cargo

Basham states that CBP has developed a draft proposed rule containing its proposed security filing (SF, 10+2) requirements for 10 additional data elements from importers 24 hours prior to foreign lading, and for 2 additional data sets from ocean carriers, for imported maritime cargo.

This draft has been sent to the Department of Homeland Security (DHS) for its review and comment.

Like the Trade Act of 2002, and many of the new security measures CBP has implemented over the past five years, Basham states that 10+2 will be phased in. With the new reporting requirements, CBP will continue to work with the trade to make sure all issues are resolved before it goes to full compliance.

(See ITT's Online Archives or 05/31/07 news, 07053105, where trade sources indicated that the proposed rule was expected by fall 2007, with the final rule likely to be "fully implemented" by the end of 2008.)

CBP is Implementing SFI, the Next Generation of CSI

The Container Security Initiative (CSI) will soon be deployed in 58 foreign ports, which will cover 85% of the maritime containerized cargo coming to the U.S. Basham notes that CBP is now implementing the next generation of CSI - the Secure Freight Initiative (SFI) - which integrates radiation detection and container imaging.

Basham states that SFI will meet the Security and Accountability for Every (SAFE) Port Act requirement to conduct an overseas integrated scanning pilot program and will be fully deployed in three ports around the world - Port Qasim, Pakistan; Port Cortes, Honduras; and Southampton, United Kingdom, with some limited capacity in certain additional ports.

(See ITT's Online Archives or 05/14/07 news, 07051415, for BP summary on the beginning of official SFI data transmissions from Port Qasim in April 2007.)

CBP Thinks 100% Scanning Concept Being Considered by Congress is Flawed

With regards to discussions underway in Congress about 100% scanning1, Basham stated that CBP believes that the concept is fundamentally flawed.

According to Basham, CBP's SFI pilot will give CBP information on the technical feasibility of 100% scanning, the impact on supply chains, the security gains, if any, and the costs to both the public and private sectors.

Basham also expressed concern about the credibility of the U.S. with its international partners, as mandating 100% scanning prior to concluding the first phase of the SFI pilot will undermine the credibility of CBP's current efforts.

C-TPAT

According to Basham, C-TPAT's more than 7,000 members account for 45% of imports into the U.S. and in the next few years, C-TPAT will evolve even further to respond to the widespread demand for participation.

Basham notes that CBP has validated 78% of C-TPAT certified partners and expects to have validated 100% by the end of 2007.

Basham also stated that CBP will continue to pursue mutual recognition between C-TPAT and foreign business partnership programs through the World Customs Organization (WCO) Framework. Basham notes that CBP has signed the first Mutual Recognition Agreement with New Zealand and is actively engaged with Jordan and the European Union (EU) in developing a mutual recognition regime. Japan and Canada have also expressed interest in the concept, according to Basham.

(See ITT's Online Archives or 07/03/07 news, 07070305, for BP summary on CBP's selection of ten validators for the C-TPAT third party validation pilot in China.

See ITT's Online Archives or 07/16/07 news, 07071615, for recent BP summary regarding the U.S.-New Zealand arrangement on global trade that could result in mutual recognition of supply chain programs.)

1The House version oflegislation to require overseas scanning of 100% of ocean containers bound for the U.S.within three or five years (H.R. 1) is currently the subject of a House-Senate conference to resolve issues between the House and Senate versions of the bill. (See ITT's Online Archives or 01/11/07 news, 07011110, for BP summary on House passage of H.R. 1.)

Commissioner Basham's remarks (dated 07/11/07) available at http://www.cbp.gov/xp/cgov/newsroom/commissioner/speeches_statements/commish_remarks_csc.xml.